Young, but not irresponsible
The idea that the young are feckless spendthrifts who can’t afford homes because of their designer lifestyles has been laid to rest.
Treasury boffin Mark Vink was the killer.
Vink delved into historic spending figures, and found that the much-maligned Millennials in fact have higher savings rates than baby boomers did when they were the same age.
‘‘From the baby boomers onward, the savings rate of each generation exceed those of the generation preceding it,’’ Vink found.
It’s not that Millennials can’t afford homes because of their savings habits. They can’t afford homes despite their better savings habits.
So how have older people come to see the young as wild spendthrifts? There are a number of plausible explanations.
The first is that people tend to think they are responsible for their own successes. This is